Tax Tip - 2018

By: Michelle Makos

Tax Tip - 2018

Tags: Real Estate Selling, Income Tax Tip for 2018, Michelle Makos, Capital Gains Tax

I just wanted to wish you a very prosperous and healthy 2019 and thank you for hanging in with me through the year.  As we get ready to close out the year, I thought I would add this reminder for anyone who has bought a home in 2017 or sold one (compliments of Revenue Canada).


 

 OTTAWA, March 29, 2018 /CNW/ - If you bought or sold your home in or plan to buy or sell a home soon, the Canada Revenue Agency (CRA) has information to help you.

Principal residence exemption

Did you know that any profit--called capital gain--on the sale of your principal residence may be exempt from taxes? Generally, you do not have to pay tax on a capital gain when you sell your home if it was your principal residence for all the years that you owned it.

If you sold a property that was your principal residence, you must report the sale and designate the property as your principal residence on Schedule 3 of your income tax and benefit return. You must also fill in the appropriate sections of Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Trust). Only one property can be designated as a principal residence per tax year per family unit.

Home buyers' amount

Eligible home buyers can claim $5,000 on line 369 of Schedule 1 of their income tax and benefit return for the acquisition of a qualifying home in 2017.

You may qualify for the home buyers' amount if you did not live in another home owned by you or your spouse or common-law partner in 2017 or in any of the four preceding years. You do not have to be a first-time home buyer if you are eligible for the disability tax credit or you acquired the home for the benefit of a related person who is eligible for the disability tax credit.
 



I also wanted to share a little Royal Heritage Realty info with you !!!  Moving forward the principal owners in Royal Heritage are Paul Etherington (Broker of Record) and myself.  We look forward to growing our offices and making Royal Heritage the real estate brand you "TRUST".    We have a great vision of where we want the company to be in 2019 and we thank all the other people in our network who have helped make us the biggest office in Pickering with two other offices in Whitby and Oshawa.   Growing sometimes can take adjustments as no sea is calm and by now having this partnership of the two of us, we are sure this is the best move for the future of our business.   We wish our past partners continued success in their careers.  

Please feel free to share the CRA info with your family or friends if you feel it may be relevant to them and also stay tuned for December stats around the first week of January to see how we finished off the year and where I see 2019 going !!!  Cheers everyone, stay safe and enjoy a wonderful New Year.